Murdoch says ITV deal is a 'long-term' investment

Talking to former BBC business editor, Jeff Randall on Radio 5Live last night, James Murdoch said that Sky had invested £940 million in ITV for long term reward, and not just to stop a merger between the broadcaster and NTL.

BSkyB's chief executive said: "As I said at the time, the dynamics of the market around ITV clearly played a part in creating the opportunity. But no, we are a long term investor in ITV and we are keen to see the business grow."

Murdoch said the idea for the ITV deal first came to him while on a trip to Spain with Sky's chief financial officer Jeremy Darroch last month. The pair consulted the Sky board two days later, with the deal completed the following day.

He also welcomed Michael Grade's appointment as executive chairman at ITV, calling it a "strong appointment."

"I think all shareholders are very keen to see him get on board and see what ideas are for growth and taking the business forward," he said, adding that it was premature to say what Grade would do in the job.

Talking about recent comments by Sir Richard Branson calling Sky's stake in ITV a "threat to democracy", Murdoch said: "I try not to get into personal attacks or anything like that. We at Sky are very, very, very proud of the contribution we have made to the media market place in the UK and consumers across the UK."

"It's always been about choice, about innovation, about moving forward quickly. And we think we are just trying to do a good job for our customers," he added.